Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 in Chapter 2 into a new workbook. a. Set up a ratio worksheet

Copy the Big Rock Candy Mountain Mining financial statements from Problem 1 in Chapter 2 into a new workbook. a. Set up a ratio worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for the firm. Transcribed Image Text: EхHIBIT 3-6
EPI’s RATIOS vs. INDUSTRY AVERAGES
A
в
D
Elvis Products International
Ratio Analysis for 2015 and 2016
Industry
3 Ratio
2016
2015
2016
4
Liquidity Ratios
5 Current Ratio
6 Quick Ratio
2.39x
2.33x
2.70x
0.84x
0.85x
1.00x
7
Efficiency Ratios
8 Inventory Turnover
3.89x
4.00x
7.00x
9 A/R Tumover
9.58x
9.77x
10.70x
10 Average Collection Period
37.59 days 36.84 days
33.64 days
11 Fixed Asset Tumover
10.67x
9.95x
11.20x
12 Total Asset Tumover
2.33x
2.34x
2.60x
13
Leverage Ratios
14 Total Debt Ratio
58.45%
54.81%
50.00%
15 Long-term Debt Ratio
16 LTD to Total Capitalization
17 Debt to Equity
18 LTD to Equity
25.72%
22.02%
20.00%
38.23%
32.76%
28.57%
1.41x
1.21x
1.00x
61.90%
48.73%
40.00%
19
Coverage Ratios
1.97x
20 Times Interest Eamed
3.35х
2.50x
21 Cash Coverage Ratio
2.23x
Profitability Ratios
3.65х
2.80x
22
17.50%
23 Gross Profit Margin
24 Operating Profit Margin
25 Net Profit Margin
15.58%
16.55%
3.89%
6.09%
6.25%
2.56%
5.99%
1.15%
3.50%
26 Retum on Total Assets
2.68%
9.10%
27 Retum on Equity
28 Retum on Common Equity
6.45%
13.25%
18.20%
6.45%
13.25%
18.20% Transcribed Image Text: Big Rock Candy Mountain Mining Co.
Income Statements
For the Years 2015 and 2016
2016
$369,300
285,400
83,900
2015
$354,000
281,800
72,200
Sales
Cost of Goods
Gross Profit
Depreciation
Selling & Admin. Expense
Other Operating Expense
Net Operating Income
Interest Expense
Earnings Before Taxes
26,820
23,340
26,360
21,820
1,080
32,660
1,080
22,940
7,685
24,975
7,505
15,435
6,174
$9,261
Тахes
9,990
$14,985
Net Income
Notes:
Тах Rate
40.00%
40.00%
Shares
52,100
$0.29
52,100
S0.18
Eamings per Share
Big Rock Candy Mountain Mining Co.
Balance Sheet
For the Year Ended December 31, 2016
2016
2015
Assets
Cash
$14,714
$1,841
$41,090
$10,300
$550
Marketable Securities
Accounts Receivable
$42,100
Inventory
Total Current Assets
Gross Fixed Assets
$48,490
S101,440
$352,600
$46,910
$104,555
$388,000
$78,020
$309,980
$414,535
Accumulated Depreciation
Net Plant & Equipment
$51,200
$301,400
$402,840
Total Assets
Liabilities & Owner’s Equity
Accounts Payable
Accrued Expenses
Total Current Liabilities
Long-tem Debt
Total Liabilities
$35,200
$32,700
$2,740
$35,440
$2,850
$38,050
$152,700
$190,750
$52,100
$121,500
$158,600
$194,040
$2,100
Common Stock ($1.00 par)
Additional Paid-in-Capital
Retained Eamings
Total Owner’s Equity
Total Liab. & Owner’s Equity
$121,500
$50,185
$223,785
$414,535
$35,200
$208,800
$402,840

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